In this topic of smart business sense, I will be sharing with you, business, the laundry  way. Walt Disney once said that: “The future is not the result of choices among alternative paths offered in the present. It is a place that is created; created first in the mind and will, and then created next in the activity.”

The laundry business was first created in the mind and will of Mr. Pius Okocha who runs a laundry outfit within the University of Ibadan campus, before it was created as a daily family business activity.

The business started as far back as 1975, when the owner retired from the institution’s payroll. Till date, the business is still thriving.

The first concept and of the business idea, as Mr. Okocha agreed, was to create a laundry service for the university community, and not too long, customers were thronging in from outside the campus as well.

Basically, clothes brought in by clients can be divided into corporate wears, casual and traditional wears. What does it require to start a laundry business?

First, people are needed. The number of individuals you required, depends on the scale of the business. Generally, the greater patronage you have, the more people you need. It is safe to say you can start with two people. These would take care of manual work and the washing of clothes that do not require machine wash.

Machines are needed. Pressing irons are basic equipment. A washing machine can be purchased as the volume of work increases.  Other materials required are chemicals (e.g. bleach), washing soap, local starch and pegs for sunlight drying. It can be seen that these requirements are not things one cannot find in an average household.

What about the operational daily demands of the business? From the owner’s opinion, the operations are not complex.

There is a book where client details are registered. Its entries include type of clothes, payment made, receipt issued or not, phone number, date of collection and staff responsible.
On sales and marketing, that is, increasing patronage, the laundry business thrives on relationship marketing and referrals. Mr. Okocha pointed out that his first customers were the university staff, and afterwards referrals through word-of-mouth advertising and call card exchange with prospects brought more customers from outside the campus, as mentioned earlier.

The pricing system in the laundry business is said to be flexible. It is a flea market without a union to regulate the price. However, if market conditions are favourable, prices are as follows:

A complete suit (hard-wool), N500; complete agbada-N500; buba and sokoto, N200 while corporate and casual wears go for N70 per unit. Do not forget, these prices vary with the market situation and environment or location. I advice you to do your own research; depending on your location, then you can set your price.

On the aspect of finance, the business owner in question used his pension account to fund his business. The same account served as a source of finance for family expenses.
There is no hard and fast rule as this is peculiar to our subject in question. Start up capital is minimal and deals with procurement of the equipment earlier mentioned as well as payment of salaries to workers.

Human resources are unskilled labour employed to do daily washing and ironing while taking home a daily pay. They charge per unit. They need not be on the pay roll as other staff members are family members and sons of the business owner.

We note here a difference in operations and staff strength between a small scale business such as this, and larger ones where there is a high level of organisation.

The organisational structure in bigger businesses  will include the  receptionist, customer service, quality management officer, delivery officer and a managing director.

On the issue of growth and expansion, Mr. Okocha desired to improve his services if provided with investment funds to be able to operate like that of the big laundry businesses in the industry.
The laundry venture is not without a challenge. One major challenge is power supply to keep the business running. Power and constant water supply are critical success factors for the laundry business. Others may be, a location of your own, to help your save and  channel the rent you pay for space to expand the business.

From interaction with the laundry entrepreneur, if you are getting ready to venture into the laundry business, I will advise that:

Your business, as an entity, should have its own corporate account with the owner on the payroll. Profit should be ploughed back into the business.

The business should have a business plan. Start small but plan for growth.

Monitor your expenses through book-keeping. Keep a data-base to track customers.

Customer relationship is key. Mr. Okocha opined ‘I am jovial with customers.’

Operate on ‘cash and carry’ and avoid delivery service as part of start-up.

Finally, Become an expert by reading and learning. Go Succeed!